Niyamath Parveez

With all the talk of the recession and people suffering because of the credit crunch, some industries are still managing to boom whereas others are finding that some consumers are refusing to let their expenditure be totally cut. This has led to many people making more of some of the lower to medium extravagances and expenses they had in their life whilst sacrificing the higher expenditure items or the really luxurious purchases. This has had an impact on the food and restaurant industry, with a number of people deciding that eating out is the sort of expenditure they can no longer afford. However, food is something that is clearly close to many people’s hearts and this can be reflected in the way that some are happy to go without some other forms of products as long as they can still eat out at their favorite restaurants.

The industry has been affected in a very similar way to the customers and there is no general consensus within the industry, which makes for an uncomfortable time in trying to predict the long-term outcome of the recession of restaurants. This means that many firms and business are working hard to safeguard their future and to ensure they will be around for many years to come and hopefully be vibrant when the boom era returns again.

The Ninety Nine brand of restaurants has made itself a firm favorite with numerous families all across America with its combination of low prices and easy convenience but even they have struggled to remain economically vibrant in this troubled time and they have made moves to utilize outsourcing capabilities to remain cost effective in the industry. By outsourcing their food and services distribution channels, Ninety Nine, or more importantly their owning firm, O’Charleys Inc will be in a position where they will be able to sell off their distribution facility, which is currently housed in Massacheussets. It is expected that this sale will earn the firm anywhere between $6 and $8million cash proceeds, which is obviously a huge sum in the recession. With such an immediate cash boost, it is very apparent why O’Charleys would be considering such a move and no one would blame the firm for following through with this process.

Any situation that leads to people losing their jobs is going to be a trying and testing period for all concerned but given the wide nature of the firm and how many people it manages to employ across the country, it is apparent they have a larger responsibility to look after an entire workforce. These cuts may cause some people to lose their job but clearly the extra money coming into the organization may be enough to ensure that many more people are able to remain employed. Outsourcing may be the scourge for some citizens, and the ones that lose their job will have a natural negativity to the system but for those who find they are able to retain their job because of the cash injection that outsourcing offers will be extremely happy with the situation. For some, it will leave a bad taste in their mouth but for those Ninety Nine restaurant workers who have a better chance of remaining employed thanks to this outsourcing move, it will taste very sweet indeed.